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Cryptocurrency News Articles

15 Best ARK Stocks to Buy Now

May 14, 2024 at 02:04 am

ARK Invest Management, led by Cathie Wood, manages nearly $17 billion in assets across its family of exchange-traded funds. Wood is renowned for her innovative strategies, often likened to rollercoaster rides. Despite a challenging 2022, ARK Invest remains a force in the investment world, with its holdings including Tesla, Coinbase, and Zoom Video Communications. ARK's focus on growth, innovation, and technological disruption positions it as a significant player, making its portfolio analysis valuable for investors seeking high-return opportunities.

In this article, we will take a look at the 15 best ARK stocks to buy now. To see more such companies, go directly to 5 Best ARK Stocks To Buy Now.

Cathie Wood is one of the most polarizing, and prominent figures on Wall Street. With over three decades of experience in the financial sector, including a notable tenure as the chief investment officer of the global thematic strategies division at AllianceBernstein Holding LP, she founded ARK Investment Management a decade ago. Currently serving as the Chief Investment Officer (CIO) of ARK, she manages nearly $17 billion in assets under management across the ARK Invest family of exchange-traded funds and her distinctive venture capital fund, the ARK Venture Fund. Although her funds have drawn notice for their innovative strategies, they've also encountered varied outcomes, often likened to rollercoaster rides, with ARK Investment Management witnessing one of its most triumphant years in 2017, achieving a notable 87.4% gain driven by a remarkable 1,300% surge in Grayscale Bitcoin Trust. This success coincided with Bitcoin reaching unprecedented highs of $20,000 per coin.

On the other hand, Wood's premier investment vehicle, the ARK Innovation ETF (NYSE:ARKK), experienced a surge of 211% in both March 2020 and January 2021 and managed to retain much of this momentum as the tech sector flourished amidst increased demand for computing products during the latter stages of the COVID-19 pandemic. However, 2022 presented challenges, characterized by rampant inflation and turmoil on Wall Street from elevated interest rates, leading to the Ark Innovation ETF plummeting by 47% over the year, wiping out all gains accrued during the pandemic era. As of May 10, the ARK Innovation ETF (NYSE:ARKK) has declined approximately 14.6% year-to-date, contrasting with the S&P 500's 10% gain during the same period.

Additionally, Wood has made several predictions about Bitcoin, consistently raising the price target over time. At the beginning of the year, she mentioned that Ark's "base case" for Bitcoin would be $600,000. However, this forecast has since been revised upwards to as high as $3.8 million by the year 2030:

"Last year we put out our bull case for Bitcoin. It was $1.5 million. With this institutional green light that the SEC has provided, kicking and screaming though it did, the analysis we've done is that if institutional investors were to allocate a little more than 5% of their portfolios to Bitcoin, as we think they will over time, that alone would add $2.3 million to the projection I just gave you."

However, many are critical of this position. One such individual being Kevin O'Leary. Earlier in January, the "Shark Tank" host stated that if Bitcoin were to appreciate to the levels predicted by Cathie Wood, it would signify a collapse of the American economy. While O'Leary acknowledges that many see Bitcoin as a hedge against economic downturns, and he himself holds a portion of it for that reason, with his confidence stemming from Bitcoin's predictable supply, O'Leary doesn't foresee an imminent collapse of the global or U.S. economy, which would be necessary for Bitcoin to meet Wood's ambitious price target.

This wasn't the only controversial opinion that the ARK Invest CIO holds. Those keeping up with Cathie Wood over the years might be familiar with her consistently emphasizing innovation, growth, and technological disruption poised to revolutionize human societies. Over recent years, she has heavily invested in genetics, 3D printing, biotechnology, self-driving, and electric cars. However, when it comes to AI, she appears more cautious, as she alerts investors about valuations in this sector. For the past couple of quarters, Wood has been steadily selling off shares of chipmaker NVIDIA Corporation (NASDAQ:NVDA), a company many would consider nothing less than the superstar amidst the AI revolution. In an episode of the Wall Street Journal's Take on the Week, Wood gave an idea behind her decisions:

We have been selling Nvidia for quite some time, mostly because we believe that for every dollar of AI hardware sold, another $10 of AI software will be sold. Everyone now understands that Nvidia is the key chip player. It's created the AI age in a sense, but we do think that it has become a check the box stock. It's surprising hugely on the high side of expectations, and we do think that expectations could be getting ahead of themselves. Now, I've said this for the past $200, it's closing in on $700 now, but I've watched Nvidia all my career actually since it's gone public, it's a very cyclical stock. The reason is just like now, when Nvidia is feeding a new movement, in 2017, it was the crypto movement, GPUs were very important. There's this hyperactivity, everyone excited trying to get in at the same time, so there's double ordering, triple ordering, quadruple ordering, and then there is an inventory correction. We think that will happen again. Whenever I hear double ordering, triple ordering, quadruple ordering in response to shortages, I do pull away from a stock like that.

The first quarter of the year didn't bring much in terms of good news for the Wall Street investor, as Shares in Cathie Wood’s flagship fund tumbled to a five-month low on April 16 following a drop in Tesla, Inc. (NASDAQ:TSLA), its largest holding, prompted by concerns over the carmaker’s growth prospects amid a round of job cuts. This decline marks a continuation of the challenging period for the $6.7 billion ARK Innovation ETF (NYSE:ARKK), which has faced losses this year as a number of unprofitable tech companies lose favor with investors and expectations for interest-rate cuts from the Federal Reserve diminish.

On the other hand, Cathie Wood's ARK Invest recently offloaded $15 billion worth of 70,600 Coinbase Global, Inc. (NASDAQ:COIN) shares, prompting speculation from investors. Wood clarified that this move wasn't about dumping stock but rather active portfolio management and emphasized that despite the sale, Coinbase Global, Inc. (NASDAQ:COIN) remains a top position in ARK Invest's holdings, reflecting confidence in the company's long-term potential. Wood also mentioned plans to reinvest profits into other promising stocks, highlighting a dynamic investment strategy aimed at maximizing returns.

Regardless of her position in current trends, investors pay attention to her movements within the market. With that in mind, let's take a look at some of the best stocks in Cathie Wood's ARK portfolio. Some notable names in this list include Tesla, Inc. (NASDAQ:TSLA), UiPath Inc. (NYSE:PATH), and Coinbase Global, Inc. (NASDAQ:COIN), among others.

Cathie Wood of ARK Investment Management

15. Beam Therapeutics Inc. (NASDAQ:BEAM)

Number of Q4 2023 Hedge Fund Shareholders: 16

Ark Invest’s Q1 2024 Investment Stake: $270.3 million

Headquartered in Cambridge, Massachusetts, Beam Therapeutics Inc. (NASDAQ:BEAM) is a biotechnology firm specializing in pioneering precision genetic medicines through its proprietary base editing technology. The company aims to offer lifelong treatments for patients afflicted with severe diseases.

In Q1 2024, Beam Therapeutics Inc. (NASDAQ:BEAM) reported a net loss of $98.7 million, translating to $1.21 per share, an improvement from the $96.5 million loss ($1.33 per share) recorded in the corresponding period last year. This performance closely mirrors analyst projections, which anticipated a loss of $1.42 per share. Despite a slight decrease from $1.2 billion in December 2023, the company maintained a robust cash position of $1.1 billion by the end of the quarter, ensuring financial stability well into 2027.

According to Insider Monkey's fourth-quarter database, 16 hedge funds displayed confidence in Beam Therapeutics Inc. (NASDAQ:BEAM), compared to 17 funds in the previous quarter.

Much like Tesla, Inc. (NASDAQ:TSLA), UiPath Inc. (NYSE:PATH), and Coinbase Global, Inc. (NASDAQ:COIN), Beam Therapeutics Inc. (NASDAQ:BEAM) ranks as one of the best ARK stocks to buy.

14. Palantir Technologies Inc. (NYSE:PLTR)

Number of Q4 2023 Hedge Fund Shareholders: 44

Ark Invest’s Q1 2024 Investment Stake: $293.27 million

Palantir Technologies Inc. (NYSE:PLTR) functions as a software enterprise specializing in data fusion platforms, facilitating both machine-assisted and human-driven data analysis. Its product suite includes Palantir Gotham, Palantir Apollo, and Palantir Foundry.

In the first quarter, Palantir Technologies Inc. (NYSE:PLTR)'s revenue surged by 21% to reach $634 million, slightly surpassing analyst expectations. The company continued its streak of profitability, marking its sixth consecutive quarter of reported profit.

Insider Monkey's analysis of 933 hedge fund portfolios for the December quarter of 2023 revealed that 44 held stakes in Palantir Technologies Inc. (NYSE:PLTR). Leading the pack was D. E. Shaw, with ownership of 20.75 million shares valued at $356.39 million.

13. Intellia Therapeutics, Inc. (NASDAQ:NTLA)

Number of Q4 2023 Hedge Fund Shareholders: 28

Ark Invest’s Q1 2024 Investment Stake: $302.3 million

Founded in 2014, Intellia Therapeutics, Inc. (NASDAQ:NTLA) is an American clinical-stage biotechnology company dedicated to the development of innovative, potentially curative therapeutics utilizing CRISPR-based technologies.

As of the end of the fourth quarter of 2023, 28 out of the 933 hedge funds analyzed by Insider Monkey held shares of Intellia Therapeutics, Inc. (NASDAQ:NTLA). Among them, Catherine D. Wood’s ARK Investment Management emerged as the largest hedge fund investor.

12. Shopify Inc. (NYSE:SHOP)

Number of Q4 2023 Hedge Fund Shareholders: 68

Ark Invest’s Q1 2024 Investment Stake: $353.54 million

Shopify Inc. (NYSE:SHOP) serves as a critical provider of internet infrastructure for commerce, offering businesses the tools needed to launch, expand, and manage retail operations across various scales. With its platform and services utilized by millions of businesses in 175 countries, Shopify plays a vital role in supporting a diverse range of enterprises.

Insider Monkey's analysis of 933 hedge fund holdings for Q4 2023 revealed 68 investments in Shopify Inc. (NYSE:SHOP). Notably, the largest investor in Shopify Inc. (NYSE:SHOP) among these is Arrowstreet Capital, led by Peter Rathjens, Bruce Clarke, and John Campbell, holding 20.9 million shares valued at $1.6 billion.

Rowan Street Capital stated the following regarding Shopify Inc. (NYSE:SHOP) in its 2023 annual investor letter:

“Shopify Inc. (NYSE:SHOP) is an all-in-one e-commerce platform that empowers businesses of all sizes to build, manage, and grow their online stores. Founded in 2006, Shopify now holds a commanding >10% market share in US e-commerce.

The value of Shopify lies in its simplicity for merchants to easily start and scale their business, so much so that merchants fall in love with their solutions and never want to leave, no matter how big they get. They understand that as they grow and confront new challenges, Shopify will solve their problems so they can take their business to the next level. That is the power of Shopify’s flywheel.

We have owned Shopify’s stock since 2022. Our average cost basis is $60. Following our purchase, the stock hit a low of $26 in October 2022. Just 15 months following those lows, Shopify stock is now trading at $80 (a 200% rebound) as investors celebrated the decision to sell its capital intensive logistics business, which was largely expected to cost billions of dollars to build out — a move that enables Shopify to retain its original, asset-light business model. Additionally, while many tech companies struggled in the face of macroeconomic challenges, Shopify defied expectations by maintaining robust revenue growth in 2023. Revenue increased by 25% year-over-year in the most recent quarter, with gross profit growing by a healthy 36%. We are now sitting on a +35% unrealized gain on our position after owning the stock for almost 2 years. Not a bad return, but what a wild ride it has been. Just another example that volatility is the price of admission in this business.”

11. Unity Software Inc. (NYSE:U)

Number of Q4 2023 Hedge Fund Shareholders: 38

Ark Invest’s Q1 2024 Investment Stake: $372.14 million

Unity Software Inc. (NYSE:U), headquartered in San Francisco, is an American video game software development company. Originally founded in Denmark in 2004 as Over the Edge Entertainment, it underwent a name change in 2007. The company operates a platform that offers software solutions for creating, managing, and monetizing interactive, real-time 2D and 3D content designed for mobile phones, tablets, PCs, consoles, and AR/VR devices.

As of the end of the fourth quarter of 2023, 38 hedge funds tracked by Insider Monkey held stakes in Unity Software Inc (NYSE:U). The most notable stake in Unity Software Inc (NYSE:U) is owned by Silver Lake Partners, led by Jim Davidson, Dave Roux, and Glenn Hutchins, which holds a $1.4 billion stake in Unity Software Inc (NYSE:U).

10. DraftKings Inc. (NASDAQ:DKNG)

Number of Q4 2023 Hedge Fund Shareholders: 55

Ark Invest’s Q1 2024 Investment Stake: $395.7 million

DraftKings Inc. (NASDAQ:DKNG) operates as a digital sports entertainment and gaming company, with its services spanning the United States and international markets. The company provides online sports betting and casino services, daily fantasy sports, media content, and various consumer products.

As of the close of Q4 2023, 55 hedge funds tracked by Insider Monkey held stakes in DraftKings Inc. (NASDAQ:DKNG), marking a slight increase from the previous quarter's 51 hedge funds.

DraftKings Inc. (NASDAQ:DKNG) stands as one of ARK's top stocks, alongside Tesla, Inc. (NASDAQ:TSLA), Coinbase Global, Inc. (NASDAQ:COIN), and Block, Inc. (NYSE:SQ).

9. Zoom Video Communications Inc. (NASDAQ:ZM)

Number of Q4 2023 Hedge Fund Shareholders: 41

Ark Invest’s Q1 2024 Investment Stake: $413.8 million

Zoom Video Communications, Inc. (NASDAQ:ZM), headquartered in San Jose, California, is a communications technology company that rose to prominence during the pandemic, becoming a household name amid lockdowns. Now, Zoom Video Communications, Inc. (NASDAQ:ZM) is focusing on introducing several essential features for businesses, including word processing capabilities and increased utilization of artificial intelligence to enhance its flagship video conferencing service.

During the first quarter of 2024, Cathie Wood reduced her stake in Zoom Video Communications, Inc. (NASDAQ:ZM) by 43%.

According to Insider Monkey’s Q4 2023 database, 41 out of 933 hedge funds were shareholders of the firm. Zoom Video Communications, Inc. (NASDAQ:ZM)’s largest investor fund shareholder was ARK Investment Management itself.

8. Roblox Corporation (NYSE:RBLX)

Number of Q4 2023 Hedge Fund Shareholders: 50

Ark Invest’s Q1 2024 Investment Stake: $451.2 million

Roblox Corporation (NYSE:RBLX) operates as an entertainment company, offering a metaverse digital environment where users can interact with each other and play video games. The firm is actively working on enhancing its platform's monetization and recently partnered with an advertising technology company in April 2024 to further this objective.

In the fourth quarter of 2023, Insider Monkey analyzed 933 hedge funds' shareholdings and identified 50 shareholders of Roblox Corporation (NYSE:RBLX). ARK Investment Management held the largest stake in the company during the quarter.

7. Robinhood Markets, Inc. (NASDAQ:HOOD)

Number of Q4 2023 Hedge Fund Shareholders: 21

Ark Invest’s Q1 2024 Investment Stake: $527.35 million

Robinhood Markets, Inc. (NASDAQ:HOOD) is a financial services company headquartered in Menlo Park, California. It offers commission-free trading of stocks, exchange-traded funds, and cryptocurrencies, as well as individual retirement account management through its mobile app, which was launched in March 2015.

As of the end of December 2023, Insider Monkey's analysis of 933 hedge funds revealed that 21 of them had purchased and held shares of Robinhood Markets, Inc. (NASDAQ:HOOD). Among these hedge funds, the largest shareholder of Robinhood Markets, Inc. (NASDAQ:HOOD) was Cathie Wood's fund, which owned shares valued at $445 million.

6. CRISPR Therapeutics AG (NASDAQ:CRSP)

Number of Q4 2023 Hedge Fund Shareholders: 26

Ark Invest’s Q1 2024 Investment Stake: $555.98 million

CRISPR Therapeutics AG (NASDAQ:CRSP) is a biotechnology company headquartered in Zug, Switzerland, with operations also in the United States. It specializes in utilizing the CRISPR gene editing platform to develop innovative treatments for various rare and common diseases.

In January 2024, Vertex Pharmaceuticals (NASDAQ:VRTX) announced that its revolutionary gene editing therapy, Casgevy, developed in collaboration with CRISPR Therapeutics AG (NASDAQ:CRSP), had received approval from the US FDA. This therapy is intended for individuals aged 12 years and older diagnosed with transfusion-dependent beta-thalassemia (TDT).

Insider Monkey's research on hedge fund portfolios in the fourth quarter of 2023 revealed that 21 out of 933 hedge funds held stakes in CRISPR Therapeutics AG (NASDAQ:CRSP). Among these investors, Cathie Wood's ARK Investment Management emerged as the largest shareholder, with holdings valued at $534 million.

In addition to Tesla, Inc. (NASDAQ:TSLA), UiPath Inc. (NYSE:PATH), and Coinbase Global, Inc. (NASDAQ:COIN), CRISPR Therapeutics AG (NASDAQ:CRSP) ranks as one of the best ARK stocks to invest in.

Click to continue reading and see the 5 Best ARK Stocks To Buy Now.